Domestic airfares are about to increase sharply

If the proposal of Vietnam Airports Corporation is approved by the Ministry of Transport, domestic airfares will likely increase.

Vietnam Airports Corporation (ACV) wants to adjust the current fare frame for domestic passengers to narrow the gap between domestic and international.

Domestic airfares are about to increase sharply

Vietnam Airports Corporation has just sent a document to the Ministry of Transport regarding investment plans for projects in the 2016-2018 period.

In the document, ACV proposed the Ministry of Transport to approve a roadmap to adjust airport fees for domestic passengers in the direction of narrowing the gap between domestic and international flights by 2-4 times in 5 years after equitization to ensure investment efficiency. Thereby, contributing to increasing revenue, increasing accumulation, promoting ACV's reinvestment process, and improving business results.

According to ACV, in terms of structure, the number of domestic passenger transports and output accounts for about 2/3 of the total service output. However, according to Decision No. 1992/QD-BTC dated August 15, 2014 promulgating the prices and price ranges of some aviation services at airports in Vietnam, the price of domestic aircraft landing and take-off services is about 2.5 times lower than that of international aircraft, the passenger service fee is also from 2.5 to 8 times lower depending on each airport, and the security screening fee is also 6 times lower.

Meanwhile, the investment costs of international and domestic ports only differ by 20-30%.

On that basis, ACV proposed to consider approving the policy of adjusting the fare collection framework according to the roadmap from 2015-2020 for passengers traveling on domestic routes at a number of newly invested ports, located in areas with developed economies, serving tourists with certain economic conditions such as Noi Bai, Da Nang, Tan Son Nhat, Cam Ranh, Phu Quoc, Vinh, Phu Bai ports.

In addition, the Vietnam Airports Corporation also proposed that the Ministry consider adjusting the current price discount mechanism to make revenue sources transparent to shareholders. According to ACV, this also aims to establish a level playing field among domestic airlines.

Thus, if the proposal of Vietnam Airports Corporation is approved by the Ministry of Transport, domestic airfares will likely increase./.

According to VOV